What is the contribution margin per quality testing

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Reference no: EM132461101

Problem - Roseville, Inc. produces two types of gaming systems: Starter and Advanced. The gaming products are produced in separate departments and sent to the quality testing department before being packaged and shipped. A labor-hour bottleneck has been identified in the quality testing department due to the high skill requirements of the job. Roseville, Inc. has compiled the following data in order to optimize its use of labor hours for producing the most profitable product.

 

Quality Testing Labor-hours

Contribution Margin

Starter

0.80

$200

Advanced

0.50

150

Required - What is the contribution margin per quality testing labor-hour for the Starter product?

a. $160

b. $40

c. $269

d. $250

Reference no: EM132461101

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